Commodore prices slashed to 1997 prices !!!

[csv8]

Commodore prices slashed
RICHARD BLACKBURN WITH ANDREW HEASLEY
June 12, 2010


Holden's Sportwagon has been a shining light for Commodore sales.
Buyers can save the equivalent of $13,000 on a Commodore as the car maker attempts to secure its No. 1 status, writes Richard Blackburn.

Holden has wound the clock back almost 15 years on the price of its best-selling Commodore, as the company sacrifices profit to keep Australia's best-selling car on top of the sales list.

The Commodore is now cheaper than smaller, similarly equipped mid-sized cars such as the Mazda6, Subaru Liberty and Honda Accord, with Holden offering the car for $33,990 drive-away as part of a run-out sale ahead of a new model expected to go on sale in September.

The price is about the same as it would have cost to drive away in a similarly equipped 1997 VT Commodore. The deal comes with a host of extra equipment at no added cost, including leather upholstery, 18-inch wheels, Bluetooth and parking sensors.

It effectively represents a discount of more than $13,000 over the recommended retail price.

Commodore sales have slumped dramatically since the launch of the VE model in 2006.

In 2005, the last full year of the VZ Commodore, the car attracted 67,000 buyers. Last year, the total was less than 45,000. At the height of the car's popularity in 1997, almost 95,000 were sold.

The slide has been masked partially by the outstanding success of the Commodore Sportwagon. Wagons used to comprise one in five Commodore sales; now they make up a third.

The Commodore is not the only victim of the slide in sales of locally made cars in the past five years. Mitsubishi's 380 was discontinued in 2008, while Ford's Falcon and Territory have slipped down the sales charts as lower tariffs have made imports more attractive.

Toyota's locally built sedans, the Camry and Aurion, have fallen well short of initial sales projections.

Holden updated the Commodore sedan with a smaller and more frugal 3.0-litre engine in September last year. But it took the unusual step of not refreshing the interior or exterior design of the car.

As a result, the Commodore hasn't enjoyed the spike in sales that usually accompanies a model refresh.

Holden has reacted by running constant drive-away deals for the VE, which started at $36,990 and have fallen ever since.

Holden executive director of marketing and sales John Elsworth admits margins have been squeezed by the deals. "Does it mean our profits get squeezed? Absolutely.

But our cost-base at the moment here is pretty good with our restructure last year so we can weather the storm, if you like, from a reduced margin perspective," he says.

Holden lost $210 million last year, its fifth successive loss.

Elsworth says the company has responded to the shift in consumer demand away from large cars by developing a second car line.

The Cruze small car will be built at the company's Elizabeth plant in South Australia from February next year.

"That way we are producing cars across the two biggest market segments," he says.

Despite the sales slide, Elsworth is confident the Commodore will remain the top-selling car in the country this year, marking a 15-year run at the top.

"Our objective is still to be number one this year," he says.

"I don't think the model changeover really impacts that at all."

This week, Drive obtained an exclusive look at the interior of the new model, albeit in left-hand-drive guise for export markets.

It shows minor cosmetic changes to the cabin layout, the most noticeable being two large circular air vents in the middle of the dash.

The vents are believed only to appear on the sporty SS and SV6 models, while the rest of the range will get a more sedate treatment.

A multi-function LCD screen, flanked by 10 push buttons, has moved higher up on the console to address one of the major ergonomic failings of the VE - that drivers have to take their eyes of the road to fiddle with buttons that are presently set too low.

More expensive models are expected to get an upmarket touch-screen unit for controlling the airconditioning, audio and other systems in the car. Some models will also get a hard disk drive for storing music.

Other changes are believed to be limited to seat trims and inserts in the doors and on the dash, which has piano-black highlights.

[Brazen]

I think Holden and Ford are both guilty of not knowing how to sell these cars. Instead of showing these large cars as medium-sized alternatives by focusing on fuel economy or safety features, why dont they sell them as unique products cars which offer you all of what Australia has to offer?

Just once I would like to see an ad where a Commodore/Falcon is actually towing something! Or maybe show it crossing a swollen creek or hurtling down some pock-marked dirt road, show it easily avoiding a roo which has jumped out in front or overtaking a B-double with ease. Most buyers will never put the car through these things but thats not the point, your showing that they can if they wanted to.

Instead of trying to hide the unique aspects of a large RWD car, why not celebrate them??

These cars should be just as much about selling Australia as they are about selling cars.

[Bud Bud]

Originally Posted by Brazen

I think Holden and Ford are both guilty of not knowing how to sell these cars. Instead of showing these large cars as medium-sized alternatives by focusing on fuel economy or safety features, why dont they sell them as unique products cars which offer you all of what Australia has to offer?

Just once I would like to see an ad where a Commodore/Falcon is actually towing something! Or maybe show it crossing a swollen creek or hurtling down some pock-marked dirt road, show it easily avoiding a roo which has jumped out in front or overtaking a B-double with ease. Most buyers will never put the car through these things but thats not the point, your showing that they can if they wanted to.

Instead of trying to hide the unique aspects of a large RWD car, why not celebrate them??

These cars should be just as much about selling Australia as they are about selling cars.

You sir are a genius! Wow a tv car ad that makes you feel good about your purchase while advertising its strengths well who woulda thought???

http://www.uniquecarsandparts.com.au..._falcon_17.htm

http://www.uniquecarsandparts.com.au..._holden_30.htm

I don’t think it is any accident that these two cars were amongst the best sellers for their respective manufactures in this country of their time.

Bud Bud

[Mr Hardware]

Originally Posted by Bud Bud

You sir are a genius! Wow a tv car ad that makes you feel good about your purchase while advertising its strengths well who woulda thought???

http://www.uniquecarsandparts.com.au..._falcon_17.htm

http://www.uniquecarsandparts.com.au..._holden_30.htm

I don’t think it is any accident that these two cars were amongst the best sellers for their respective manufactures in this country of their time.

Bud Bud

Ahaha Bud Bud, that's legendary, especially the XD ad

It is absolutely 100% correct that a 4-cylinder car is inferior in nearly every way. The falcon is a man's car, not some 'oooh nice mazda did you get the matching handbag' car.

[Bossxr8]

Originally Posted by Brazen

Just once I would like to see an ad where a Commodore/Falcon is actually towing something! Or maybe show it crossing a swollen creek or hurtling down some pock-marked dirt road, show it easily avoiding a roo which has jumped out in front or overtaking a B-double with ease. Most buyers will never put the car through these things but thats not the point, your showing that they can if they wanted to.

The FG XR6 ad had the Falcon towing a jetski trailer. Not a huge load to tow but the idea was there.

[Mr Hardware]

Well said brazen. The whole purpose of the full size RWD sedan has been lost on the marketing departments of ford and holden.
Something like this:

[Brazen]

Originally Posted by Mr Hardware

Well said brazen. The whole purpose of the full size RWD sedan has been lost on the marketing departments of ford and holden.

Over the last 4-5 days I was in the Flinders Ranges staying at Wilpena Pound, and the amount of grey nomads with caravans there was staggering. Boom time for Falcon sales, right? Wrong!

The only Falcons towing caravans were EF and EL era, instead poxy XTrails or Outlanders seem to be doing hauling duty of the new vehicles even though owners have no interest in off-roading. Imagine a LPG Falcon G6 as touring/towing vehicle for these people, perfect.

Its almost as if people have forgotten about the Falcon's 4.0 litre engine, rear wheel drive and 2.3tonne towing capacity. Its good that they are trying for buyers such as young men who wants a 1.8 tonne sports sedan, but maybe instead of a young drongo in a bright green Falcon racing around a windy road there should also be marketing targeting other demographics.

Recently at an equestrian event I was hosting, a girl in her 20s came along to enquire about joining our club. Her only concern was that she had to tow with her young horse and float (all up 1200kg) with her parent's car...... A BA Futura. She was thinking of buying a 4 cylinder petrol 1994 Navara as she didnt know if the Falcon would be a good tow car, until I walked her over to my AU Fairmont which has been towing much larger horses and floats for 11 years. Its almost as if it didnt even cross her mind that the Falcon has more uses than a Corolla.

[csv8]

or the American ad.."Built for The Road Ahead"

[R-Design]

Originally Posted by Drive

The slide has been masked partially by the outstanding success of the Commodore Sportwagon. Wagons used to comprise one in five Commodore sales; now they make up a third.

Found this part interesting. I wonder if this trend will continue after Holden introduce their new interior/exterior styling with VE2.

[Mr Hardware]

Its almost as if it didnt even cross her mind that the Falcon has more uses than a Corolla.

Correct. The vast majority of people simply see the falcon as a flabby, thirsty camry.
How wrong they are.

[tweeked]

You are correct, but unfortunately only a tiny percentage of people tow. And most who do are tradies that a sedan will not work for.

[Brazen]

Originally Posted by tweeked

You are correct, but unfortunately only a tiny percentage of people tow. And most who do are tradies that a sedan will not work for.

But I think with an ageing population and tens of thousands of baby boomers retiring the caravan towing market must be massive. But more than that, cars are sold on capabilites not actual uses, I bet many people buy cars because of what it can do even if they never use it - towing is but one example of that. There are attributes the Falcon has which are never mentioned and I think could be real selling points, things I mentioned earlier with towing, dirt road driving, overtaking power, ruggedness, ability to avoid accidents, long distance comfort etc.

Basically Ford (and Holdens) current approach to selling is to say that the Falcon is a ANCAP 5 star rated car with power windows, alloys, AC, etc... Thats all well and good but every single other bloody car has those things too. Why dont they actually talk about what makes Falcon different?

Ford should be actively highlighting the unique capabilities of the Falcon not hiding them.

[glavas]

its a sad world were living in brazen. but i argee with your posts. i wish the government would restrict the amount of car brands they have in this country. if it were up to me. i would only allow hiluxes(dam good work ute),commodores,falcons,evos and wrx's everything else is just rubbish and taking sales away from our aussie made large rwd cars.

[glavas]

its a sad world were living in brazen. but i argee with your posts. i wish the government would restrict the amount of car brands they have in this country. if it were up to me. i would only allow hiluxes(dam good work ute),commodores,falcons,evos and wrx's everything else is just rubbish and taking sales away from our aussie made large rwd cars.

[ltd]

Imagine the effect it's going to have on resale of used commodores. Also, the depreciation those who paid full price will now have to suffer.
Well done Holden for making what I thought was bad value even worse.

[vztrt]

Originally Posted by ltd

Imagine the effect it's going to have on resale of used commodores. Also, the depreciation those who paid full price will now have to suffer.
Well done Holden for making what I thought was bad value even worse.

The resale on them is pretty crummy now.

Originally Posted by glavas

its a sad world were living in brazen. but i argee with your posts. i wish the government would restrict the amount of car brands they have in this country. if it were up to me. i would only allow hiluxes(dam good work ute),commodores,falcons,evos and wrx's everything else is just rubbish and taking sales away from our aussie made large rwd cars.

Then why bother to open the market up at all?

[Pat Riley]

Good news for those looking at a 2nd hand Falcon / Commodore down the track. Bad news for new car owners.

I still think a new FG XR6 for $32,990 (or slightly less) is the best value new car you can get at the moment.

[oranpark addict]

Originally Posted by BA Falcon

I still think a new FG XR6 for $32,990 (or slightly less) is the best value new car you can get at the moment.

Have to agree here. There was an undriven demo for 29990 in local paper a few weeks ago

[mrbaxr6t]

holysmokes those prices are cheap I almost paid that much for a bamk1 turbo 2 years or so ago! Won't go NA again but have to be boosted wont see them new under 45k I shouldn't think, might drop them down when they run them out end of year but I am still very happy with my BA

[Romulus]

Originally Posted by ltd

Imagine the effect it's going to have on resale of used commodores. Also, the depreciation those who paid full price will now have to suffer.
Well done Holden for making what I thought was bad value even worse.

Bingo.

They've already been caught out once before (Adventra) having to send customers rebate cheques for bastardising resale values - here we go again!

[Jason[98.EL]]

they made a loss for the last 5 years and now have to drop the price so they can keep number 1 I can see another loss coming but this one could the the cut to the throat that holden dont need

I love the way ford sell fewer cars and make a profit Keep up the good work ford au

Jason

[Paxton]

Originally Posted by Jason[98.EL]

they made a loss for the last 5 years and now have to drop the price so they can keep number 1 I can see another loss coming but this one could the the cut to the throat that holden dont need

I love the way ford sell fewer cars and make a profit Keep up the good work ford au

Jason

The Apple doesn't fall far from the tree - Holden is just like GM. In so many ways it is scary. The same tactics (sell at a loss, keep production up, stay number one) is what killed GM in the first place.

I can see Burela laughing all the way to the bank when Ford announces another profit, and Holden makes another woeful loss.

[Smoke Pursuit]

What about the brand new XR6s you can buy for 29,990 drive away?? Fords doing it too, only they are crushing the resale on their big models, like XR6...

[Brazen]

Originally Posted by bfiipursuit

What about the brand new XR6s you can buy for 29,990 drive away?? Fords doing it too, only they are crushing the resale on their big models, like XR6...

Yes I have a feeling that Holden is only responding to Ford's sickingly cheap XR6s, there is certainly a systemic problem in people are not buying large cars, and we cant blame high fuel prices...

[Mr Hardware]

Originally Posted by bfiipursuit

What about the brand new XR6s you can buy for 29,990 drive away?? Fords doing it too, only they are crushing the resale on their big models, like XR6...

You sure?
Link?
I've seen drive away for $36,990 but not $29,990, which is alot different....

[Iggypoppin']

Originally Posted by bfiipursuit

What about the brand new XR6s you can buy for 29,990 drive away?? Fords doing it too, only they are crushing the resale on their big models, like XR6...

That's just clearing old stock ready for the new FGII though, and they are demonstrators. Holdens new model obviously failed a bit as they didn't do anything interior or exterior wise.
Nothing wrong with ford pushing a few old models out the door to make room for new ones.
Not having a dig, just saying, they seem(keyword here) to be doing the normal thing around the release of a new model, and that is get rid of the old ones in stock.

[Smoke Pursuit]

Originally Posted by Iggypoppin'

That's just clearing old stock ready for the new FGII though, and they are demonstrators. Holdens new model obviously failed a bit as they didn't do anything interior or exterior wise.
Nothing wrong with ford pushing a few old models out the door to make room for new ones.
Not having a dig, just saying, they seem(keyword here) to be doing the normal thing around the release of a new model, and that is get rid of the old ones in stock.

Holdens actually getting a new Model.. Its the VE Series II, new wheels, new dash, new trims etc etc. All Ford are getting is an updated gearbox and cat converter.

And yes they are $32,990 for UNDRIVEN Demos but some dealers are getting that desperate that they are doing $29,990.

http://www.carsales.com.au/all-cars/...977&__Qpb=true

see link for further clarification..

Holden are still doing SV6s for 36 kay on the road, they only one they are truely fully discounting is the special edition International models, they are protecting SV6 resale unlike Ford!

[Iggypoppin']

Originally Posted by bfiipursuit

Holdens actually getting a new Model.. Its the VE Series II, new wheels, new dash, new trims etc etc. All Ford are getting is an updated gearbox and cat converter.

And yes they are $32,990 for UNDRIVEN Demos but some dealers are getting that desperate that they are doing $29,990.

http://www.carsales.com.au/all-cars/...977&__Qpb=true

see link for further clarification..

Holden are still doing SV6s for 36 kay on the road, they only one they are truely fully discounting is the special edition International models, they are protecting SV6 resale unlike Ford!

Fair point, but to be fair ford are also getting a new V8 and they have not left their model update 4 years like Holden did. I am
sick of people telling me the VE looks "new" when it looks like a 4year old car in desperate need of a revamp.
If a dealer is desperate to offload his stock of ex demos, well, I suppose it's up to the dealer principle how low they can afford to drop the price. As I said, nothing wrong with clearing stock. But Holden seem to have the wrong idea. Staying number 1 is totally pointless if you aren't making squat profit!!! It's a title and that's that. Being number 1 isn't always number 1....

[buggerlugs]

$29,990 drive away !!! Up here the cheapest has been $32,990 drive away..........

[CFOUR]

no bad can come from the competitor selling cars cheap.